CRM — All updates

congratulations, you literally made millions of dollars in one day thanks to a crashed software stock called, I'll reveal, Salesforce. It has recorded incredible numbers.

I'm interested when a stock is crashing like Salesforce, how do you distinguish between a genuinely mis-valuation of the company and something that's cheap for some reason?

Meta recently moved to using Slack, which is interesting to me because we are investors in Salesforce, and Slack is owned by them.

Slack is a subsidiary of Salesforce. But Slack essentially allows you to chat with programming agents directly within Slack, eliminating the need to go to chat.gbt or cloud.com, for example, and talk to chatbots directly in the Slack window.

or for me, uh, what made my week this week and last week was Salesforce. That's where you're going to get excitement, so to speak. Yeah, I wanted to talk about Salesforce and then overall the the software space because you and I have talked many times about how software was, you know, the redheaded stepchild of the market for a long time and wow, software is back.

It's strong. Salesforce CRM being the ticker, uh, definitely being a leader there.

One of the reasons we bought Salesforce shares at $163 was that If you go to the stocks tab for course members, and then to Salesforce ( found in the Meet Kevin app), the stock's momentum was enormous.

I still have it for $458. I think it could reach $500, but let me check. If you review my notes on this company's cash flow , you will find they date back to July. I need to find her.

The free cash flow yield was around 13%, which is a really great number . I even mentioned that they are not currently doing share buybacks, but their balance sheet and cash flow are so strong that I decided to invest in them.

And the second stock is Salesforce. Salesforce, right ? Right now, it's a direct price drop to a direct skyrocketing rise, right? The way these stocks were selling was really interesting, people were selling them at any price , much like people were doing with Nvidia in early 2025.

People were doing the same thing with ServiceNow and Salesforce, and now these stocks are absolutely rocketing , right?

If you're Salesforce and you say, "Hey, we'll allow you to programmatically take our data and integrate it into the cloud so people don't have to leave the same segment—you know, either a bot Slack, which I think is a CRM, to be fair—or you can do all of that from the cloud and not have to leave your cloud chat and you can do everything—you know, that can basically read all your data," does n't that mean you're selling your competitive advantage ?

And over time, doesn't that create the possibility that you won't be able to convert as many customers?

Well, for example, firstly, Anthropic might collapse after its IPO funding dries up with the dominance of open-source models and Anthropic's financial hemorrhage, or, sorry, secondly, it might become the software that dominates other software.

Think of "Snow" or "Sales Force" for example; It accommodates " Snowflake" or "Salesforce" data without a user interface. But that means people are using "cloud", right , and not "CRM".

So does this mean that CRM's days are numbered ? Each side faces existential risks. This is really annoying. It is clear that the software sector has gone through a period of intensive selling.

I still believe that it is still in a relatively heavy selling phase . Good. In other words, there are still opportunities, whether it's Bath or CRM now. I'm less interested in them at the moment, but I'm only listing them because many people are asking about them.

If workday fell 70% and Salesforce fell 50, whatever it was, it was an absolute bloodbath.

And in the winner category, Salesforce and a bunch of other names that I probably should have had handy before because I don't know all these names.

In the best stocks in the market list, we finally have software stocks. Crowd Strike. Salesforce. Pause. Pause. Salesforce. The literal eye of the storm. Salesforce. Best stocks in the market.

Now, let's raise the stakes a bit. Salesforce, ticker symbol CRM. Guys, this one got a lot more interesting overnight. For months, Wall Street was convinced that AI was going to destroy Salesforce.

The logic was simple. If AI agents can do the work, why would companies keep paying for all those expensive software seats? On that fear alone, the stock fell about 24% from its high.

Then on August 26th, it reported earnings and the stock skyrocketed.

software has gotten so cheap that there was a point where Salesforce stock, which we have exposure to, we sent a buy alert out on Salesforce specifically when it was about $165 because it had about a 13% free cash flow yield.

And Mark Beni off literally raised $26 billion of debt to buy back $25 billion of stock at about $191. So we looked at that setup and we're like this thing's trading for like a 0.9 peg.

Uh that's a price to earnings growth ratio. We can buy it at 165 for less than what the CEO just bought it back for.

Salesforce just reported earnings and the stock is up 25% on the week. Its 22.5% post earnings pop was one of the best days in the history of Salesforce stock.

Revenue is up 11% year-over-year and adjusted earnings per share came in at $5.90 for the quarter, which was up 103% year-over-year. But that's not why Salesforce stock was up.

There's actually some hidden details you need to know about that earnings beat.

Then we are going to quickly discuss what seems to be the SAS apocalypse ending and why so many software stocks have been rallying so hard with Viva Systems up over 20% over the past couple of days along with Salesforce.

The exact same thing happened to Salesforce, because Salesforce reported on the same day, and Salesforce stock has now rallied by over 25%, I believe, just going off of my memory here, but the stock also responded very, very well to its earnings report.

Salesforce, let's take a look at Salesforce here. Salesforce is still booming today.

Salesforce has another day in the sun.

Salesforce is doing great. The cues are fine.

So with all that said, I do want to take a look at Salesforce. I haven't done that yet. So we've had a thesis obviously on the software cycle bottoming out. we won't belabor Salesforce, but I do want to look at Salesforce because I do think that as we've been calling for a software bottom in in 2000 in Q3, Q4, it's happening. 10 Q earnings report.

Salesforce up 23%, Crowd Strike up 20%.

because people say oh Kevin you know like why not just wait for Palunteer or Salesforce to bottom and the issue is you don't necessarily know exactly where that bottom is but you do know when things are getting really cheap

Octa 23, Salesforce up 12. Uh personally got exposure.

Wow, dude. Salesforce 17 freaking percent. That's awesome. That's great.

8 19% on Salesforce now.

Salesforce keeps going. It's honestly just remarkable movement how quickly Tesla 353.

CRM, big pop on CRM here, just like CrowdStrike and Nvidia. If we look at this, you can see the stock had been pounded down. Granted, it's rallied back significantly going into the earnings, but still way off of its all-time highs based on the SAS the SAS apocalypse or whatever they call that thing where the the fear was essentially that AI was going to make these software companies obsolete.

CRM, this stock was cold as ice. You go back 2, 3 months ago, we were down huge on Salesforce, like huge, like tens of thousands of dollars, right? Massive losses. And uh now this stock is also like one of the hottest stocks in the entire market, right?

And after hours up another 12 plus percent, so big upward move there.